Nigeria spends $4 billion on steel imports annually; Minister Audu emphasizes the need for local production to reduce forex dependence. The DAWN Commission reports significant regional spending on red meat, calling for increased participation in livestock production. Collaborative initiatives like COLDET are aimed at fostering community involvement and sustainable development, while efforts to revitalize the steel sector are underway to achieve self-sufficiency.
Nigeria spends approximately $4 billion annually on steel imports, according to Minister of Steel Development, Prince Shuaibu Abubakar Audu. He emphasized the necessity for import substitution to alleviate pressure on foreign exchange, underlining that boosting local production is essential for economic growth. The exploration arm of the industry must operate at full capacity to achieve these goals.
During a recent visit to the National Steel Raw Materials Exploration Agency (NSRMEA) in Kaduna, Audu praised the agency’s performance, highlighting its status as one of the top agencies under his ministry. Plans are in progress for collaboration with the Ministry of Defence and the Defence Industries Corporation of Nigeria (DICON) to manufacture military hardware, reinforcing the aim of self-sufficiency in critical sectors.
In another development, the Development Agenda for Western Nigeria (DAWN) Commission revealed that the Southwest region spends over N800 billion monthly on red meat consumption. Director-General, Dr. Seye Oyeleye, noted that approximately 10,000 cows are slaughtered daily, representing a significant economic opportunity for local farmers and entrepreneurs.
Despite the substantial consumption of livestock products in the region, Oyeleye noted the lack of local participation in the industry’s value chain. He stressed the importance of transforming the Southwest into cattle producers rather than mere consumers, given the region’s available arable land and technology.
To advance livestock production, regional governments must engage actively. DAWN is advocating for a ten-year development plan aimed at enhancing the production of meat, milk, and poultry. The COLDET initiative is designed to empower communities, emphasizing sustainable development through active community participation and resource assessment.
The AGDF’s steering committee chairman, Dr. Tunji Olugbodi, expressed enthusiasm for the partnership with DAWN, stressing the importance of community-led development initiatives. The COLDET project will provide vital tools for communities to assess their development needs systematically, marking a shift towards sustainable bottom-up development strategies.
Minister Audu reiterated the government’s intentions to rehabilitate Ajaokuta Steel Company and integrate military hardware production into the broader steel industry initiative. He announced that a Memorandum of Understanding (MoU) has been drafted with DICON, awaiting presidential approval for the military-industrial complex plan.
To consolidate the steel sector, Audu plans to host Nigeria’s first steel summit, aiming to create a comprehensive growth blueprint. He also reported progress on the Metallurgical Industry Bill, which will offer a regulatory framework for steel players upon enactment.
Efforts to attract foreign investment are underway, with President Tinubu’s visit to New Delhi yielding a commitment for producing five million metric tons of steel in Nigeria. Additionally, a Chinese firm is investing $300 million in a steel plant in Ogun State, augmenting national production capacity.
Minister Audu acknowledged the historical challenges faced by the sector but expressed confidence in ongoing reforms. The goal is to produce 10 million metric tons of steel annually within five years, significantly reducing reliance on imports.
Moreover, during his visit to the DICON factory, Maj Gen Aniedi Edet highlighted the financial burden of importing military hardware and his optimism about local production efforts. The partnership with the Ministry of Steel Development aims to ensure self-sufficiency and potentially export capabilities in military equipment.
The minister concluded his visit with a courtesy call to former President Muhammadu Buhari and discussed his objectives with local government officials, reinforcing his commitment to enhancing Nigeria’s industrial capacity and economic independence.
In summary, Nigeria’s annual expenditure of $4 billion on steel imports underscores the critical need for local production, as highlighted by Minister Audu’s initiatives. By fostering self-sufficiency in both the steel and military sectors, bolstered by the COLDET project, Nigeria aims to reduce reliance on imports and stimulate economic growth. Collaborative efforts with local and international partners are pivotal in realizing these ambitious plans.
Original Source: economicconfidential.com
